Jennings – Site Visit: Exploration on New Fronts

Yesterday we attended a site visit at Probe’s Borden Gold Project located in Chapleau, Ontario

We viewed high grade hole 256 that returned 51 m of 10.3 g/t gold (announced December 12, 2012) and highlight the evenly spread nature of mineralization judging from the assay intervals.

Drilling has commenced on a 50 m step out to the NW and SE from hole 256, which should give a better

indication of potential and trend of the high grade mineralization. Results from drilling are expected in March.

The 2013 exploration budget would be about $15- $17 million and will tackle all areas of Borden Lake: the main zone, the nose/limb and the new properties 20 km east of the current Borden Lake deposit. Probe now has a better handle on gold mineralization indicators, and would target drilling to suit.

Probe now controls over 350 km of prospective land believed to be along the same horizons that host the Borden Gold deposit (Figure 1). Grab samples from the new properties were as high as 1-3 g/t gold, higher than grab samples at the main Borden Lake area that returned on the order of 0.8 g/t gold.

The Company has now released all 313 holes that will be included in the updated resource due next week. We have already included in our model a ~10% increase above the pit-constrained 3.4 Moz (0.6 g/t gold cut-off), which we believe could grow further still, as the deposit remains open in all directions.

Overall, we are impressed with the many facets of Probe as it advances the robust Borden Lake deposit toward its initial PEA and continues to explore the high grade potential at depth as well as regional targets.

Our NAV 5% valuation remains unchanged at $5.28 per share. We reiterate our BUY rating and 12-month target of $3.75 per share based on a 0.73x NAV multiple.